Types of Policies
A married couple buys a survivorship life policy for estate tax planning. The husband dies first. What happens to the policy?
Answer and explanation
Answer: D. No death benefit is paid on the first death; the policy continues in force until the surviving spouse dies.Source: NAIC Life Insurance Guide — PDF page 6, Survivorship Mechanics
More types of policies questions
- An insured develops a health condition halfway through a 20-year level term policy. What happens to the fixed death benefit and premium specified for that term?
- An insured outlives a return-of-premium term policy, and no death benefit was paid. What feature may then apply according to the contract?
- An insured’s health deteriorates during a renewable term policy. At the end of the term, which feature is most valuable?
- An insured's health worsens before a renewable term policy expires. The renewal right is still available. Which outcome best reflects that feature?
- An owner buys a $100,000 ordinary whole life policy. How do cash values accumulate over the life of the policy?
- An owner of a flexible-premium deferred annuity wants to know if they can continue making purchase payments in the future. Which statement is most accurate?
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